Dubai’s shares retreated for a second day as Middle East stocks fell after Emaar Properties PJSC (EMAAR) said first-quarter revenue from apartment deliveries plunged 81 percent amid weak property demand.
Emaar, the builder of the world’s tallest skyscraper with the heaviest weighting on Dubai’s index, declined the most in a week. Arabtec Holding PJSC, the biggest publicly traded construction company in the United Arab Emirates, slid as much as 2.2 percent. The DFM General Index (DFMGI) fell 0.2 percent to 1,593.37, the lowest intraday level since May 10, at 12:39 p.m. in Dubai. The Bloomberg GCC 200 Index (BGCC200) of Persian Gulf stocks slipped 0.3 percent. Israel’s benchmark stock index lost 1.3 percent.
“Investors are now starting to look closer at the Emaar balance sheet where potentially we could see some deterioration as deliveries wind down and overheads remain high,” said Majed Azzam, an Alembic HC Securities analyst in Dubai. “This is potentially the reason why there’s caution surrounding Emaar at these levels.”
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